County Supervisors OK Support For Capital Gains Tax Reform

SAN DIEGO, CA — The county Board of Supervisors has unanimously approved a measure that voices support for a change that one sponsor says would "modernize and reform the outdated capital gains exclusions on home sales."

Supervisors on Tuesday directed Chief Administrative Officer Ebony Shelton to include support for laws that would expand exclusion caps -- in connection with capital gains taxes on sales of owner-occupied housing -- in the board's legislative program.

Supervisor Jim Desmond and Jordan Marks, the county assessor-recorder- clerk, authored the proposal.

Desmond called the measure "a critical step toward increasing housing supply and restoring the American Dream for seniors, veterans, families and first-time home buyers."

Desmond said he and Marks were "excited to bring forward a meaningful, bipartisan step toward addressing one of the biggest drivers of our housing crisis: the lack of movement in the existing housing market."

"For decades, excessive regulations, environmental roadblocks and soaring building costs have slowed new home construction," Desmond said.

The supervisor said that with housing supply not meeting demand as home prices climb, "the next generation is being priced out."

"The average first-time home buyer is now 40 years old, an all-time high," the District 5 supervisor added. "That is unacceptable."

Desmond said updating federal capital gains exclusions on primary home sales -- which have been in place since 1997 -- is "one of the simplest, most powerful tools available."

Desmond said current exclusions, in the $250,000/$500,000 range, "barely make a dent compared to today's home prices."

He added that in turn, many senior citizens, long-time homeowners and middle-class families will opt not to sell their property.

"Many choose instead to hold onto their homes and pass them down, because that is the only financially responsible option," Desmond said.

Desmond said that several federal proposals -- including doubling the exclusions and indexing them to inflation -- "would free up homes, increase supply and give more families a shot at homeownership."

"We need Congress to act," he added.

— City News Service